Australian Dollar Faces Rising Obstacles to Sustain Its Rally
- It’s the best performing currency since April in Asia-Pacific
- Australian 2Q inflation data may spur dovish bias from RBA
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The Australian dollar is in rally mode, but its further rise is unlikely to be smooth sailing.
It’s climbed to a 15-month high against the dollar due to a widening yield differential between Aussie bonds and U.S. Treasuries as the Reserve Bank of Australia dismissed the possibility of negative interest rates, while Governor Philip Lowe said that the currency was broadly in line with economic fundamentals.